The Mandatory Provident Fund (MPF) system is a compulsory saving scheme for retirement. It is designed to help Hong Kong working population accumulate retirement savings over their working lives.
How MPF Works
Under the MPF system, both employers and employees are required to make regular contributions to a registered MPF scheme. These contributions are invested to build up retirement savings over the employee’s working life.
- Mandatory contributions: 5% of monthly income (capped at $1,500 each for employer and employee)
- Contribution ceiling: Relevant income above $30,000 is capped at $30,000 for contribution calculation
- Investment growth: Contributions are invested in chosen funds, with returns accumulated over time
- Preserved until retirement: Benefits are preserved until the member reaches age 65
2026 MPF System Update
The MPF system has evolved significantly since its inception. Key developments in 2026 include:
- eMPF Platform: The electronic MPF platform now covers all MPF schemes, with 3 permanent Service Centres (Wan Chai, Tsim Sha Tsui East, Tsuen Wan) for in-person access
- Strong Performance: MPF delivered 16.5% return in 2025 and continues to grow in 2026
- Average Balance: The average MPF account balance exceeded HK$350,000 in May 2026
- New Fund Options: ETF and ESG MPF funds are now available, offering more investment choices
Key Features of the MPF System
- Portability: MPF accounts follow you throughout your career, regardless of job changes
- Tax Benefits: Mandatory and voluntary contributions may be tax-deductible
- Investment Choice: Members can choose from a variety of funds to suit their risk tolerance
- Low Cost DIS: Default Investment Strategy offers approximately 6.4% annualized return since 2017
MPFA Oversight
The Mandatory Provident Fund Schemes Authority (MPFA) regulates the MPF system, ensuring compliance and protecting scheme members’ interests. Visit the MPFA website for the latest information and resources.
2026 Statistics
- Total MPF assets: Over HK$1.2 trillion
- Number of scheme members: Over 4.5 million
- Average account balance: HK$350,000+
- 2025 annual return: 16.5%
- YTD 2026 return: 7.22% (as of May 2026)
[Source: MPFA, MPF Ratings, GUM]